Bipartisan $52bn deal aims to boost US semiconductor production and compete with China’s technology.
Democrats in the US Congress expressed optimism on Tuesday about reaching a $52bn bipartisan deal to subsidize US semiconductor manufacturing, aiming to enhance the country’s competitiveness with Chinese technology.
House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer, both Democrats, met with House Republican Leader Kevin McCarthy and Senate Republican Leader Mitch McConnell to negotiate a compromise but did not finalize an agreement. Pelosi and Schumer issued a joint statement urging fast action, expressing confidence that the bill could pass through Congress in July.
“Democrats have already made concessions in the interest of reaching a deal, and we are optimistic that it can happen soon,” they said. McCarthy and McConnell did not provide immediate comments.
A severe chip shortage has caused disruptions in industries like automotive and electronics, leading to scaled-back production in some companies. Although both the House and Senate have passed similar bills, key differences remain to be resolved.
The Senate’s version, passed in June 2021, proposed $52bn for chip subsidies and an additional $200bn to strengthen US scientific and technological advancements to counter China. The House bill, passed in February, is nearly 3,000 pages long and includes trade provisions not found in the Senate’s version, some of which may be removed due to lack of Senate support.
Democrats have warned that substantial investments in US chip production could be at risk without congressional action. Senator Mark Warner, a Democrat, emphasized the urgency, stating, “the clock is ticking.”
Michigan Governor Gretchen Whitmer and Indiana Governor Eric Holcomb, in a joint opinion piece for the Indianapolis Business Journal, stressed bipartisan agreement among governors, asserting that federal action is essential to address the semiconductor shortage and advance national research and economic priorities to outpace global competitors.
